A share of stock resembles a consol in all of the following ways except that the:
A. annual dividend the stock pays resembles the coupon on a consol.
B. are both residual claims.
C. share of stock does not have a maturity date.
D. prices of both can be computed using a variation of the net present value formula.
Answer: B
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The expenditure approach to measuring GDP is done by using data on only
A) consumption expenditure. B) consumption expenditure and investment. C) consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services. D) consumption expenditure, investment, and government expenditures. E) wages, rent, interest, and profit.
On any given day, a salesman can earn $0 with a 20% probability, $100 with a 40% probability, or $300 with a 20% probability. His expected earnings equal
A) $0. B) $100 because that is the most likely outcome. C) $100 because that is what he will earn on average. D) $200 because that is what he will earn on average.
Which of the following people would be considered unemployed by the Bureau of Labor Statistics?
I. Mrs. X retires from her job and does not look for another job. II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months. A) I only B) II only C) Both I and II D) Neither I nor II
In 2000, Italy's per-capita GDP was ________ percent ________ than the EU-27 average.
A. 18; higher B. 6; lower C. 36; lower D. 24; higher